PBOC to increase yuan flexibility

The People's Bank of China said in its first quarter monetary report that it will increase the flexibility of the yuan's exchange rate mechanism and intervene less in determining the currency's value.

The central bank's first quarter monetary report, posted on its website, repeated the bank's pledge to keep the currency "basically stable at a reasonable and balanced level".

But, the PBOC said it will gradually retreat from its active role in the onshore currency markets to give market forces mo